The Off-hire Clause In Time Charter

The off-hire clause is an important clause in the Time Charter n she cuts off the charterers' obligation to pay hire to owrs continuously in some special conditions, so it is necessary to construe this clause correctly and properly.English law is basic and useful for settling the off-hire dispution in the Time Charter because almost all of the CP fixed the English law to be applied. In the article, the writer analyses the concerned peoblem of off-hire clause and the relationship between the off-hire clause and other clauses in the CP, and hope there is some use for reference for the Owners and Charterers' negotiation CP terms to avoiding any disputation in the future.Primarily, the article expatiates the off-hire clause and the essential to fix it in the CP. Meantime,it describes the way to pay hire under the CP n the hire must be paid punctualy and adequately. And then analyses the property of the off-hire clause, that is to say, it allocates the risk between the Owners and Charterers; besides, it is no-fault provision and totally different from the matter of a breach of contract by either party; moreover, the off-hire clause still applies when it conflicts with the exception clause although it is one kind of exception clause. Chapter 2 emphasis on the construction and exertion of the off-hire clause. In practice, the arguments always concerne on the construction of off-hire clause. Herein, we need to analyze "the service Charterer needed", "the third party intervention and the application of whatsoever" and "the cause of preventing vessel's full working" on the basis of some cases. In addition, in order to trigger the off-hire clause, three necesssary conditions must be met; and refer to the calculation of off-hire time, it relates with the off-hire clause is net loss of time clause or period off-hire clause, and there are different opinions about it under the common law. Further more, charterers can not deduct the off-hire amount from the due hire awkwardly. Although it tends to make some change on the off-hire clause, it always bases on the standard CP, so we need to make clear the off-hire clauses in the NYPE'46, NYPE'93, Baltime, Shelltime and Chinese Marine Law in the Chapter 3. Chapter 4 starts with the scope of Charterers'orders and directions to discussing the implied indemnity under the employment and indemnity clause, it also introduces the Rider Clause of the CP which acts as supplement for the off-hire clause. Finally, Chapter 5 makes the conclusion for this article.